Tuesday, May 28, 2024

Data Localization, Verified Protection, and Centralization Will Dominate Markets

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Remy Claret is the co-founder and CMO of San Francisco-based Odaseva, which provides an enterprise data platform for Salesforce. He has previously held positions in software sales engineering and product marketing for companies such as Genesys and Atos.

CIOs spent last year recovering from and adapting to the new world we all entered in the wake of the global pandemic. An increased reliance on cloud and software-as-a-service (SaaS) solutions put a ton of new pressure on data demands, and CIOs were left wondering how to cope. 

Based on the major trends I saw, here’s what I expect to see regarding enterprise data this year: 

Centralizing data demands

With increased demand on customer relationship management (CRM) data from an ever-growing number of systems, CIOs are facing rapidly growing demand on limited API resources to replicate CRM data. For example, in our work, we’ve talked with several large telecommunications providers who need to replicate their data every 5-15 minutes to other data warehouses. Moreover, this replication process needs to be integrated into a wider data strategy, all with the aim of gaining increased business agility. This high level of replication and integration with other services requires a lot of CRM data. 

I expect that we’ll increasingly see enterprises take advantage of the fact that they’re backing up data and then apply that backed-up data to agile business processes. Data can be forwarded to other platforms. Enterprises can use external connectors, not just to grab data and back it up, but to reduce demands on their CRM system. The more endpoints IT builds into a system, the more congested and slower the system becomes. But by centralizing a lot of these data demands, IT can leverage its backup system to take care of the problem. It’s an extremely powerful way for large organizations to leverage existing resources to become more agile.

Proving that data is protected

It’s no longer enough to deploy backup systems and check a box that you’re protected. We are seeing a huge shift toward organizations requiring proof that they are protected and that they can restore lost data in a reasonable amount of time. As a result, organizations are working to optimize their recovery time objective (RTO). More and more large organizations will start to take their RTO objective seriously, doing quarterly testing to ensure they can hit these objectives consistently. 

Additionally, IT needs to prove to their business networks that they have a backup for everything, including data in SaaS and cloud-based applications. They can’t just assume that the cloud or SaaS vendor provides it all. Rather, they need to show that data is secure and recoverable, and how fast they can recover it.

This renewed zeal for RTO optimization and testing is helping organizations comply with governance frameworks. We’ll see this trend grow.

Consumer rights will finally start to bite in the U.S. 

Companies that do business abroad are already accustomed to complying with consumer rights legislation, such as the General Data Protection Regulation (GDPR), which has been in effect in the EU for more than three years, and the Personal Information Protection Law (PIPL), which just went into effect in China on Nov. 1.

But very soon, compliance deadlines for new consumer privacy frameworks in three big states — California, Virginia, and Colorado — come into effect January 1, 2023. Additional states, such as Washington, have similar bills in the works, which will probably become law within the next 12 months. 

Federal privacy legislation in the U.S. is still a long way off. It’s simply not a priority as we enter the third year of the pandemic with a sharply divided legislature. So, U.S.-based companies that only do business domestically will need to prepare for state compliance, unless their business is strictly local in a state that has no prospect of a privacy law coming into effect. But given how rapidly these kinds of regulatory schemas are proliferating, waiting to create a means to bring data into compliance would be extremely short-sighted. Companies will spend a lot of time, money, and resources this year on compliance enablement for their data.

See more: Data Privacy Trends

Global privacy requirements require localization

Additionally, as privacy regulation continues to go global, it will also increasingly require localized implementation and storage. China’s PIPL passed at astonishing speed last year, cementing this trend. The extent of the requirements will become clearer this year as implementing regulations are introduced.

The year ahead will be a pivotal one for many organizations when it comes to protecting their data and ensuring it is compliant. Those who fail to take these steps will find their organizations vulnerable to attack and at a risk of high fines and other penalties when new privacy regulations come into effect.

See more: Top Data Management Software

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